Loading...
by Darius Anucauskas

WTI Oil is Still Inside A Rising Channel Pattern

Although WTI oil was moving lower from the start of this week, it failed to drop below the lower side of a rising channel pattern that has been in play since the beginning of October. Despite this week’s decline, the commodity has rebounded from the lower side of the upside channel. As long as it continues to respects that lower bound, the commodity has got a chance to move further up. This is why for now we will remain somewhat bullish.

A strong push higher and break above yesterday’s high, at 55.63, could attract more buyers into the game and the price may rise to the highest point of this week, at 56.95. The “black gold” might get a hold-up around there, or even correct slightly lower. That said, if WTI oil stays above the previously-mentioned 55.63 hurdle, this could attract the bulls back into the field and the commodity could travel back to the 56.95 zone. If this time that area fails to withstand the bull-pressure, its break might lead WTI oil to the 57.76 level, marked by the low of September 18th. Around there, the black liquid may test the upper bound of the aforementioned upside channel.

Looking at our oscillators, the RSI and the MACD, both are somewhat in support of the above-discussed scenario. The RSI, although slightly below 50, had bottomed recently and is now pointing to the upside. The MACD, even though still below zero, started pointing slightly higher.

Alternatively, if the lower side of the aforementioned upside channel breaks and the price falls below the 53.76 hurdle, which is yesterday’s low, this may lead to further declines, as more sellers could be joining in. WTI oil might then drift towards the 52.50 obstacle, a break of which could send the commodity to the 51.55 obstacle, or even to the 51.17 level, marked by the lows of October 9th and 3rd respectively.

WTI daily

Disclaimer:

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

Copyright 2019 JFD Group Ltd.

 

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT